Iran vows to fund Hamas government

Tehran: Iran pledged to provide financial assistance to the cash-strapped Palestinian Authority following threats by Western nations to halt aid to a Hamas-controlled government.

"We will definitely help this (Palestinian) government financially in order to resist America's cruelty to this country," Iranian National Security Council chief Ali Larijani said on Wednesday after a meeting with the Hamas political leader Khaled Mashal, who is touring regional countries in search of financial support.

"We hope that the new Palestinian government overcomes its current problems with the help of Islamic countries, including Iran," Larijani said.

US President George W. Bush on Tuesday said a Hamas-dominated Palestinian Authority should not be funded until it recognised Israel's right to exist.

US and Israeli officials are concerned that Tehran, which also refuses to recognise Israel, will gain influence over a Hamas-led government, hampering efforts to reach a Middle East peace settlement.

Palestinian President Mahmoud Abbas asked Hamas on Tuesday to form a new government and continue his agenda of negotiating with Israel.

Asked on Wednesday whether a Hamas-led government would remain committed to previous peace agreements with Israel, Meshaal said: "We will review these agreements and announce our stance."

"Those agreements that are not in contradiction with the principles of Palestine will be agreed to and Hamas ... will not do something that tramples on the right of the nation," the semi-official Mehr news agency quoted him as saying.